The council, which does not want change but which would embrace a merger with other North Wales councils if necessary, launched a campaign to raise awareness about what a possible merger by 2020 would mean.

Deputy leader Ronnie Hughes said Conwy services face a “tsumani” if a merger happens – Conwy Council taxes, currently £129 a year cheaper for a Band D property than those in Denbighshire, could rise in any merger.

He claims tourism would be “massively affected” by any merger as every £1 spent by the council organising events generates £32 back in revenue.

Labour Councillor Hughes said all Labour groups would continue to lobby the Labour-led Welsh Assembly and Members before a “merger map” is devised next month.

Cllr Anne McCaffrey said "radical and uncosted mergers" are “quite frightening” especially as reforms in Betsi Cadwaladr University Health Board and Natural Resources Wales “do not have a great record”.

She added there is a “real and imminent threat” to schools, social services, libraries and theatres if Conwy is forced to “dissolve and merge”, claiming staff have the Sword of Damocles over them.

It praised Conwy for becoming Entrepreneurial Council of the Year and its cultural, sporting and musical events.

But Cllr Mike Priestley, finance spokesman, stressed the council works with the Welsh Government and will continue to do so.

He said Conwy has already saved tens of millions of pounds. Last year, the average cut to local authorities was 3.4% but Conwy’s grant was cut by 4.3% or more than £16m. In 2016-2017, Conwy must save just under £16m and £11.7m in 2017-2018.

A Welsh Government spokesman said: “The case for fewer local authorities in Wales is compelling and widely accepted.

“We cannot afford to miss this opportunity to reform and reshape our councils to drive funding into improving frontline services. Continuing to provide services with the current number of local authorities and through existing service models is not sustainable in the face of the further budget tightening by the UK Government.

“We intend to publish a map before the summer and a draft Bill for consultation in the Autumn, which will set out provisions developed from the White Paper consultation on reforming leadership, increasing diversity amongst elected members and improving the way in which local authorities manage their performance.”